New BOT model may still not be preferred mode for highways: Experts

The NHAI has introduced 'harmonious exit' clause in the new concession pacts for the BOT projects

The Union government’s ambitious Bharatmala project would only see a miniscule contribution from the Build Operate Transfer (BOT) model projects as there are few takers for such projects.

To revive the BOT mode, the National Highways Authority of India (NHAI) recently came out with new set of guidelines — draft Model concessionaire agreement (MCA) — a move that may provide relief to the stuck projects.

“The MCA has tightened the norms for BOT but the bigger part of the equation is market risk. Healthy traffic forecast is the primary factor,” an official told Business Standard.

Experts feel the traffic and stretches will decide